NTOP Net2Phone (MM)

Net2Phone (Nasdaq: NTOP) today introduced three new products to add to its comprehensive suite of enterprise calling solutions. The suite is designed to meet the needs of small and medium sized businesses by providing them with the flexibility of either adding VoIP to their existing analog private branch exchange (PBX) system or replacing these systems with a full fledged Internet Protocol PBX offering. The solutions provide customers with the ability to make free calls within their corporate telephony network, including calls between branch offices, while at the same time reducing their local, national and international telephone bills for calls outside of the corporate network. Net2Phone's new products include: 1. VoiceDirectorSM: Net2Phone's most robust enterprise VoIP solution, combining IP-PBX functionality along with local, long distance and international calling plans. VoiceDirector is a complete service solution that allows corporate customers to obtain all voice communications using Net2Phone's platform, leveraging Net2Phone's technology and termination services. Users can access the VoiceDirector network via scalable gateways and office handsets, PC based softphones (which allow computer-to-computer calling and faxing), IP Phones or Wi-Fi handsets, with future versions supporting additional value-added features and applications. Built on open source software, VoiceDirector utilizes the Session Initiation Protocol (SIP) VoIP standard as part of Net2Phone's ongoing effort to incorporate industry standard protocols and platforms to respond to its customers' needs. VoiceDirector allows businesses to deploy their communications and IP data solutions on a single, cohesive platform. Allowing small and medium sized businesses to access enterprise class PBX features provides them with the benefits of VoIP on a class usually reserved for larger business with significantly more resources to spend on communications. 2. VoiceAccessSM: Net2Phone's add-on for small businesses that have legacy analog PBX/key systems, providing customers with access to inbound and outbound calling on Net2Phone's VoIP network. The service leverages the functionality of existing PBXs while still providing access to Net2Phone's VoIP services, including free interoffice calling, regardless of location. Additional features include voice mail and additional redundancy. 3. VoiceLineSM Business Plus: Net2Phone's broadband telephony solution designed for small businesses or branch offices that require only one or two lines of connectivity. VoiceLine Plus supports a host of advanced telephony features, including fax support, three-way calling, voice mail with web access and enhanced call forwarding. Net2Phone will sell these solutions through their vast network of resellers globally, including telecommunications providers, cable operators and value added resellers. Delivering corporate solutions is another step in Net2Phone's strategy to offer hosted IP-based communications solutions globally, enabling partners to offer low-cost VoIP services to their customers quickly, easily and at a low incremental cost. Net2Phone empowers its customers with the tools they need to offer consumer and corporate customers a full suite of telecommunications services. Because Net2Phone's solutions easily integrate into existing telecom systems but can also be sold as a full suite of voice services, distributors can either bundle or incorporate Net2Phone's enterprise solutions as part of their own communications solution. Distributors are further incentivized to sell Net2Phone products as they can receive a percentage of the recurring revenue generated from off-net global calling, compared with a one-time sale of equipment and services. "Enhancing our suite of VoIP solutions to the enterprise is a natural extension of our product strategy roadmap," said David Span, Senior Vice President of Product Management and Marketing. "Leveraging our ten years of delivering VoIP globally, Net2Phone brings a full suite of products and services for all business customers, giving us maximum ability to succeed with the enterprise markets." Resellers or customers interested in distributing or utilizing Net2Phone's corporate solutions into their IP environments can call 973-438-3111, email enterprise@net2phone.com or visit http://www.net2phone.com/solutions/corporate/. About Net2Phone Net2Phone provides VoIP PacketCable, SIP and wireless solutions around the world. As a leader in turn-key hosted VoIP telephony services, Net2Phone has routed billions of VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone provides partners with a SIP-based broadband telephony solution, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a high quality primary line-type service with features such as emergency calling. For more information about Net2Phone's products and services, please visit www.net2phone.com. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to satisfy in a timely manner the requirements of Section 404 of the Sarbanes-Oxley Act and the rules and regulations adopted pursuant thereto, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Press Release and in the Company's filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factors.